Types of Staffing Strategy

Home-Country National

Host-Country National

Third-Country National

Advantages

Greater control of organization

Language barrier is eliminated

The third-country national may be better equipped to bring the international perspective to the business

Managers gain experience in local markets

Possible better understanding of local rules and laws

Costs associated with hiring such as visas may be less expensive than with home-country nationals

Possible greater understanding and implementation of business strategy

Hiring costs such as visas are eliminated

Cultural understanding

Morale builder for employees of host country

Disadvantages

Adapting to foreign environment may be difficult for manager and family, and result in less productivity

Host-country manager may not understand business objectives as well without proper training

Must consider traditional national hostilities

Expatriate may not have cultural sensitivity

May create a perception of “us” versus “them”

The host government and/or local business may resent hiring a third-country national

Language barriers

Can affect motivation of local workers

Cost of visa and hiring factors